3. The College receives funding from state and local taxpayers and therefore, its expenses receive a more substantive review. As such, the College employees must ensure that all expenses necessary in the fulfillment of its stated mission are incurred at a reasonable cost and are bona fide business expenditures.

4. The college is required to adhere and report to the Integrated Postsecondary Education Data System (IPEDS) and other agencies (i.e. THECB, NACUBO, etc.). Therefore, expenses must be properly categorized.

5. FOAPAL codes are the primary chart of accounts elements used for classification, budgeting, recording, and/or reporting.

6. When requesting a budget transfer or initiating a requisition, the main point we want to put across is: 1. Each department should record the expenses in the FOAP code most relevant to the expense to ensure that expenses are being properly categorized and charged against the correct budget, and 2. the FOAP code to charge is not to be determined solely on the basis of where the funds are available. 1. Each department should record the expenses in the FOAP code most relevant to the expense to ensure that expenses are being properly categorized and charged against the correct budget, and 2. the FOAP code to charge is not to be determined solely on the basis of where the funds are available.

7. Operating Expense - Account Code List Accounts Payable Website: http://finance.southtexascollege.edu/businessoffice/forms/Account_Classifications.pdf

8. Reconciliation is of utmost importance. Verify the budget availability frequently, so that budget transfers can be prepared with ample time, thus avoiding delays. A budget transfer increases or decreases the available budget balance in the current fiscal year. Usually, budget is reallocated for future purchases, and/or cover negative balances.

9. When preparing a Budget Transfer or a Requisition, see FGIBAVL – Budget Availability Status. FOAP

10. The Request for Budget Transfer Form is B0-3500. http://finance.southtexascollege.edu/businessoffice/forms.html http://finance.southtexascollege.edu/businessoffice/forms.html General Rule of Thumb: Budget Transfers are recorded within the: 1.Same fund, 2.Same/different organization, 3.Same/different account code. 4.Increase/decreas e amount always offset. General Rule of Thumb: Budget Transfers are recorded within the: 1.Same fund, 2.Same/different organization, 3.Same/different account code. 4.Increase/decreas e amount always offset.

11. Budget Transfer Form Requirements: Fund Code Organization Code Account Code Increase/Decrease Amount Organization Name -Justification (Brief and clear explanation of reason for the departmental budget transfer). -Approval Review Signatures Program Code Not Applicable

12. Budget Category Financial Manager(s) Appropriate Vice PresidentPresident Salaries and Benefits Increase to College BudgetNot Allowed Decrease to College BudgetNot Allowed Direct Expenditures and Travel Increase to Organization BudgetRequired $1,000 or more Decrease to Organization BudgetRequired $1,000 or more Capital Increase to Organization BudgetRequired $1,000 or more Decrease to Organization BudgetRequired Example of Budget Approval Types and Signatures The following table outlines allowed usage and the corresponding signatures required. All transfers must be within the same fund code (except for restricted and plant funds).

13. Due to the number of approval signatures needed and the availability of individuals, please submit your transfer request with ample time to avoid processing delays. Your request will be processed within 48 hours, granted that the form is properly completed and is not misrouted. How Soon Are Budget Transfers Posted?

14. Tips Requisition Initiator Purchasing Department-Reviews requisition and documentation to ensure rules and regulations are met Business Office – Approves/Disapproves requisition based on budget availability Financial Manager-Approves/Disapproves requisition Purchasing Department-Assigned purchasing staff member reviews documentation. A Purchase Order # is assigned at this point. Vendor-Receives the PO#, issues items, and issues an invoice to Accounts Payable Department Receiving Department-Receives and Delivers purchased items Accounts Payable-Process invoice for payment At any point the requisition is disapproved, it goes back to initiator and the cycle restarts each time Requisition Cycle

15. Tips FOIAPPH – Documents Approval History Form FOIAPHT – Approval History Form FPIREQN – Requisition Query Form FPIPURR – Purchase Order Query Form FAIINVE – Invoice Query Form FGIDOCR – Document Retrieval Inquiry FOIDOCH FOAAINP – Document Approval Form See: Queue Level 5 – Purchasing 10 – Business Office 20 – Financial Manager Other Document Inquiry Forms REQ – Requisition PO – Purchase Order INV – Invoice

16. If FBIBAVL shows Pending Documents Tips If FBIBAVL shows Pending Documents

17. Tips Printed Marketing Allowed to Purchase Printed Marketing Materials Allowed to Purchase Promotional Items Process IDT for Promotional Item Expense Process Budget Transfer for Promotional Item Expense 1 Unrestricted Instructional Organization (Fund Code 110000) Yes, through the unrestricted instructional marketing organizations Yes, through OPRM (Unrestricted Organization)No No, Unless items are unique and cost is significant, as determined by OPRM 2 Unrestricted Non- Instructional Organization (Fund Code 110000) Yes, items must be related to department operation requirements Yes, through OPRM (Unrestricted Organization)No No, Unless items are unique and cost is significant, as determined by OPRM 3Dual2DegreeYes N/A 4Student ActivitiesYes N/A 5 Auxiliary Conference Organizations (Fund Code = 3104**) Yes, through the auxiliary conference organizations Yes, through OPRM (Auxiliary Organization)YesNo 6 Auxiliary Organizations (Fund Code = 310000) Yes, through OPRM (Auxiliary Organization) No No, Unless items are unique and cost is significant, as determined by OPRM 7 Grant/Restricted Organizations (Fund Code =2*****) Yes, through the grant/restricted organizationYes, through OPRMYesNo

18. Note: -Transfer requests should be properly completed prior to review and consideration of approval. -Handwritten, faxed, scanned, incomplete, or altered budget transfer forms are not allowed and will be disapproved.